Siemens announces major amalgamation

Mumbai, Oct 29 (IBNS) Electronics and electrical engineering major Siemens Ltd. on Saturday announced that it will amalgamate the operations of Siemens VAI Metals Technologies Pvt. Ltd., Kolkata (SVAI) and Morgan Construction Company India Pvt. Ltd., Mumbai with itself.

While SVAI is a 100% Siemens AG company, Morgan is a 100% subsidiary of SVAI.

The decision was taken at the company´s Board Meeting Saturday.

"The appointed date of the amalgamation is 1st October, 2011. The Board of Directors has considered the share swap ratio as determined by independent valuer Grant Thornton.

"The fairness opinion on the valuation was provided by ICICI Securities Ltd., a category - I merchant banker," said Siemens.

"The share swap ratio for the proposed amalgamation is: 1,318 (one thousand three hundred and eighteen) equity shares of the face value of Rs. 2 (Rupees two) each fully paid up of the company for every 100 (one hundred) equity shares of the face value of Rs.100 (Rupees one hundred), fully paid-up of SVAI (Morgan is a 100% subsidiary of SVAI)," the company said.

The proposed amalgamation is subject to the approvals of the shareholders and creditors of the companies, and other statutory and regulatory authorities in the respective jurisdictions.

Dr. Armin Bruck, Managing Director, Siemens Ltd., said: "The amalgamation is part of an ongoing consolidation strategy. Siemens Ltd. constantly seeks opportunities to deliver sustainable growth and add investor value by consolidating the Siemens Group businesses based on operational synergies."

Werner Auer, CEO of Siemens VAI, supported the amalgamation: "The integration helps Metals Technologies to improve our footprint as local manufacturer and supplier for Indian steel plants. We now can offer engineering, mechanic and automation solutions as well as lifecycle services for Indian producers from one single source."

Siemens Ltd. completed the integration with itself of four group companies - Siemens Building Technologies Pvt. Ltd., Vista Security Technics Pvt. Ltd., Siemens Healthcare Diagnostics Ltd. and Siemens Rolling Stock Pvt. Ltd - in the just-concluded financial year 2011.

Siemens Ltd., in which Siemens AG holds 75% of the capital, is the flagship listed company of Siemens AG in India.